HSBC AM launches its first money market funds in ETF format in Europe
4 DEC, 2025
HSBC AM announced today the launch of new share classes in ETF format for its money market funds HSBC Sterling Liquidity and HSBC Euro Liquidity, opening an alternative and more accessible route for liquidity position management.
The initiative continues the strategy started in 2023 to offer listed and unlisted shares within the same fund and represents, according to the manager, the first addition in Europe of ETF classes to existing money market funds regulated in the EU.
Investment objectives and regulatory framework
The new ETF format classes aim to preserve capital and provide daily liquidity, with potential performance aligned with money market rates, through the active management of credit, liquidity and interest rate risks.
These classes facilitate access, through ETF shares, to large triple A rated money market funds, relying on HSBC AM's extensive track record in liquidity solutions, whose first funds were launched in 1999.
They are also expected to be the first ETFs in Europe to meet the requirements to be classified as Low Volatility Net Asset Value (LVNAV) funds under the European regulation of money market funds. They are integrated into UCITS funds classified as Article 8 in accordance with SFDR.
Availability, target investors and markets
The ETF classes are aimed primarily at wholesale and institutional investors, including fund of funds, private banking, pension funds, insurers and family offices, who demand efficient, flexible and transparent liquidity management solutions within their portfolios.
They will be registered and available in the main European markets, including Spain, Germany, Italy, France, Ireland, Luxembourg and the United Kingdom, and will be listed on the London Stock Exchange, Borsa Italiana and Xetra.
HSBC AM manages more than 170,000 million dollars in liquidity assets in 10 currencies globally, backed by more than 30 years of experience in this segment.
Given that investors are increasingly seeking opportunities in liquidity solutions and ultra-short duration, we are pleased to launch ETF share classes of our existing liquidity funds. The aim is to offer investors more options and access to our renowned expertise in the field of liquidity, through the simplicity offered by a UCITS ETF structure.
Olga De Tapia, Global Head of ETF & Indexing Sales at HSBC AM
Based on our strong and consolidated active investment process and our experience managing money market funds over numerous market cycles, these new launches are designed to provide investors with peace of mind when looking for a tool to manage their cash and help them meet their capital preservation and liquidity provision objectives. This launch reflects our ongoing commitment to innovation in PUBLIC liquidity management and to expanding investor access to money market solutions through listed formats.
Jonathan Curry, Global CIO of Liquidity at HSBC AM
